Affreightment

Affreightment

An agreement between the owner of a ship and another party whereby the owner agrees to transport the other party's goods on that ship from and to certain stated locations. Affreightment is the equivalent of a lease; that is, the ship's owner rents space on the ship for the other party's goods.

Michael Zolotas, Chairman and Chief Executive Officer of NewLead, stated, "Our strong relationships with oil majors and specialized oil and bitumen trading companies allowed us to enter into the Contract of Affreightment for the transportation of all bitumen within a few months of the final delivery of all five bitumen tanker vessels.

In addition, Vale and Cosco will enter into a similar long term contract of affreightment which will be serviced by ten very large ore carriers of similar deadweight to be built by Cosco for the transportation of the world's best iron ore from Brazil.

In addition, Vale and Cosco shall enter into a similar long term contract of affreightment which will be serviced by ten very large ore carriers of similar deadweight to be built by Cosco for the transportation of the world s best iron ore from Brazil.

During December, 2013, the Company and its exclusive shipping contractor agreed to amend the contract of affreightment for shipments to California to provide for the carriage of joint cargos with another BC shipper and to lower the annual commitment level.

The results of the Contract of Affreightment segment were lower compared to the prior year period due to the scheduled reduction in the contracted freight rates that took effect in the fourth quarter of 2009.

The results for the Contract of Affreightment segment were lower compared to the prior-year period due to the scheduled reduction in the contracted freight rates that took effect in the fourth quarter of 2009.

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